Installment Jewelry Company has been in business for 5 years but has never had its financial statements audited. Engaged to audit them for 2019, you find that the company's balance sheet carries no allowance for bad accounts. Bad accounts have been expensed as writtenoff and recoveries credited to income as collected. The company's policy is to write off at December 31 of each year those accounts on which no collections have been received for three months. The installment contracts generally are for 2 years. On your recommendation, the company agrees to revise its accounts for 2019 to give effect to bad account treatment on the allowance basis. The allowance is to be based on a percentage of credit sales that is derived from the experience of prior years. Statistics for the past 5 years are shown in the following table: Accounts receivable at December 31,2019 , were as follows: The following partially completed table will help you to organize the information. You should base bad debt expense for 2019 on credit sales from 2018 and 2019 and the experience for the years 2015 to 2017 , since complete data for these three years are now available. *Assume that recoveries credited to income (account: Bad Debt Recoveries) apply to the previous year, so recoveries in 2016 were written off in 2015 and are shown on the 2015 row on this schedule. Calculate the estimate for bad debts using the credit sales from 2018 and 2019. Be sure to take into account amounts written off and recovered in 2018 and 2019